If actual costs are greater than standard costs, the variance is unfavorableDirect Materials Cost VarianceCalculating Direct Materials Cost Variance, you can see that the actual costs are higherFeedbackCheck My WorkThe illustrations provide the information to complete the problem.The standard cost sheet for a product is shown.Direct Labor Cost VarianceCalculating Direct Labor Cost Variance, you can see that the actual costs are higher than standard and the actual hours are less than standard. The two variances are combined for a total favorable ✔ direct labor cost variance of $✓Manufacturing CostsDirect materialsDirect laborOverheadManufacturing Costs:3,000 unitsDirect materialsDirect laborOverheadStandard price$4.30 per pound$11.71 per hour$2.40 per hourCheck My WorkActualCostsThe company produced 3,000 units that required:• 18,500 pounds of material purchased at $4.15 per pound• 6,200 hours of labor at an hourly rate of $12.01 per hour• Actual overhead in the period was $15,490Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations.Budget Performance Report$76,775 $Standard Quantity6.00 pounds2.10 hours2.10 hours15,490StandardCostsVariance(Favorable)/Unfavorable25.80 X $73.773✓, alternatively, if actual costs are less than standard costs, the variance is favorable$434✔than standard and the actual quantity purchased and used is lessStandard Costper unit$25.80$24.59$5.04$ 55.43✔than standard. The two variances are combined for a total favorable✓ direct material cost variance of $0 x.ox.Split the direct materials cost variance into the materials price varaince and the Direct materials quantity variance. Remember that you want to isolate the price variance from the quantity variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct material costvariance.Previous <Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs)Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to behigher or lower than what was expected. The total manufacturing variance can be broken down by cost type (materials, labor, overhead) and further by cost variances within cost types and usage or efficiency variances within cost types:Total ManufacturingCost Variance7↑FeedbackDirect Materials CostVarianceDirect Labor CostVarianceFactory OverheadCost Variance7Direct Materials Price VarianceDirect Materials Quantity VarianceDirect Labor Rate VarianceDirect Labor Time VarianceVariable Factory Overhead Controllable VarianceFixed Factory Overhead Volume VarianceManufacturing cost variances are determined using a standard costing system. Standard costs are predetermined✔ costs that should be incurred under efficient operating conditions. Standard costing is most suited to manufacturingoperations and the direct costs required to produce each item are defined.fixed budget. Flexible budgets useIn a standard costing system, it is important to understand that costs are compared to budget based on a flexible budget rather than a fixed budget. Flexible budgetsproduced in the period at the standard cost.use standardstandard ✔ costs and actual productionCheck My WorkStandards are set up as part of the budgeting process and are used when per unit costs can be estimated under efficient operating conditions. Remember that flexible budgets account for changes in volume.✔ organizations, where activities consist of common or repetitiveproduction volume. This means that theactual costs in the period are compared to the number of unitsvolume. This means that the actual costs

Direct costs are the expenses that are directly used for the production of goods and services for…

If actual costs are greater than standard costs, the variance is unfavorable ✔. alternatively, if actual costs are less than standard costs, the variance is favorable.V. Direct Materials Cost Variance Calculating Direct Materials Cost Variance, you can see that the actual costs are higher than standard Direct Labor Cost Variance Calculating Direct Labor Cost Variance, you can see that the actual costs are higher than standard and the actual hours are less than standard. The two variances are combined for a total favorable ✔ direct labor cost variance of s Feedback Check My Work he illustrations provide the information to complete the problem The standard cost sheet for a product is shown. Manufacturing Costs Standard price $4.30 per pound $11.71 per hour $2.40 per hour Direct materials Direct labor Overhead The company produced 3.000 units that required: 18.500 pounds of material purchased at $4.15 per pound .6.200 hours of labor at an hourly rate of $12.01 per hour Actual overhead in the period was $15.490 Manufacturing Costs: 3.000 units Direct materials Direct labor Overhead Standard Quantity 6.00 pounds 2.10 hours 2.10 hours Actual Costs Check My Work Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. Howeves do not round your intermediate calculations. Budget Performance Report Standard Costs $76.775 $ 25.80 x 15,490 73.773 Variance (Favorable) Unfavorable Standard Cost per unit $434 $25.00 $24.59 $5.04 $ 55.43 ✔than standard and the actual quantity purchased and used is less d the actual quantity purchased and used is less than standard. The two variances are combined for a total favorable direct material cost variance of s 。x. ox Split the direct materials cost variance into the materials price varaince and the Direct materials quantity variance. Remember that you want to isolate the price variance from the quantity variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct material cost variance. Previous